Transocean consolidates business structure

ZUG, Switzerland, Aug. 1 (UPI) -- Rig company Transocean said it consolidated its holdings and said Monday it grabbed a majority interest in three additional offshore drilling assets.

Transocean said it agreed to acquire any outstanding shares in its limited liability component Transocean Partners, which becomes 100 percent owned by Transocean Ltd. The deal means the parent company controls a majority stake in the Discoverer Inspiration, the Discoverer Clear Leader and the Development Driller III offshore rigs.

"We are excited about this merger, as it provides significant and immediate benefits to Transocean in the form of simplified administration and governance, tangible cost savings and improved liquidity," Transocean President and CEO Jeremy Thigpen said in a statement. "The contemplated all-equity transaction is entirely consistent with Transocean's current liquidity objectives."

Transocean in March deferred the build of five new rigs until the first quarter of 2020 following a mutual agreement with rig builder Keppel Offshore & Marine, which secured a $1.1 billion contract from Transocean in 2013.

Transocean in February had two rig contracts canceled early. In a March letter to shareholders, the company said it moved through the weak energy market in 2015 better than anticipated, but expected significant challenges for 2016

Spending in exploration and production is lower in response to weak oil prices. In its latest fleet status report, Transocean said one of its rigs, Sedco 702, was held for sale, while its estimated out-of-service days increased by a net 155 for the year so far.